eToro to Delist ADA and TRX for US Customers Citing Regulatory Concerns

2021-11-24 18:5490908

Source: CryptoPotato

Popular Israeli social trading and multi-asset brokerage platform eToro, has recently announced that it will be delisting Cardano (ADA) and Tron (TRX) for users in the United States.

eToro to Delist ADA and TRX on Dec 26

According to an official blog post published on Wednesday by the firm, the new development will take effect starting on Dec. 26. The company cited “business-related considerations in the evolving regulatory environment” as part of its reasoning.

eToro noted that it will gradually withdraw ADA and TRX functionalities from its US-based customers. By Dec. 26, users in the country will no longer be able to open new positions with the two tokens on the platform.

Staking for both crypto assets will be stopped by Dec. 31, and after Jan. 15, 2022, the final staking rewards will be paid to US users in USD.

Not Forcing Users To Sell

US users will still be able to hold any existing ADA and TRX positions securely. They can choose to close those positions whenever they wish and exchange for USD on the eToro platform, as the broker admitted that it will not be forcing anyone to sell their ADA or TRX holdings.

Additionally, any ADA and TRX holdings in eToro’s Smart Portfolio feature will automatically be converted to open positions in a user’s portfolio, which the user can either decide to continue holding or sell off.

The trading platform pointed out that it will limit the selling of ADA and TRX holdings in the first quarter of 2022. It intends to make the eToro Money crypto wallet compatible with both assets to enable US users to transfer their holdings there.

However, the firm noted that it will not limit sales for at least 30 days after it offers users support for redeeming their ADA and TRX to the eToro Money crypto wallet.

Cardano’s Founder Responds

Shortly after eToro’s announcement, Cardano’s founder, Charles Hoskinson, commented on the matter, disclosing that his team was not informed about any regulatory issues.

“On our side, we had no indication of this from eToro and it’s rather unfortunate that nothing was sent our way. We at least could have better understood their reasons.”

He added that the latest development, however, does not in any way affect ADA’s liquidity and admitted that every exchange has its regulatory thresholds.

“It has no meaningful impact on the liquidity of ADA, billions of dollars turn around every day… it was a relatively small trading market but that is just the nature of the game, liquidity comes and goes… and of course everybody has different regulatory thresholds.”

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All Comments(2)
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Wassie

Wassie

Now that the position has been liquidated, I finally don’t have to worry about it every day

11-24 18:58

SFTD Devil

SFTD Devil

Bitcoin will not set anyone

11-24 18:58
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